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Job referrals can harm variety and wages, examine finds.

Job-candidate referrals from present staff could assist corporations rent sooner, however a brand new business examine finds that counting on these recommendations can lead to a much less numerous workforce for companies, and generally much less cash for brand new hires.

A examine from Seattle’s PayScale discovered that males who get a job after being referred by a buddy or member of the family are provided on common $1,600 per yr lower than those that hear about jobs in different methods.

Family and friends members are the most important supply of referrals, the examine says, making up about 14 % of all staff employed.